EDPR receives loan to support onshore wind farm projects
The European Investment Bank has signed a Green Loan for c. 66 MEUR (c. 304 MPLN) with six special purpose vehicles owned by EDP Renewables (EDPR) to support the construction and operation of six medium-sized onshore wind farms with a total nominal capacity of 150 MW in Poland.
The six onshore wind farms financed by EIB are geographically located mainly throughout the north (Kozlowo, Krasin, Lichnowy, Chojnice and Piatkowo wind farms) and the south (Bogoria wind farm) of the country.
The onshore wind farms have been awarded individual 15-year two-sided contract-for-differences (CfD) under competitive auctions held in 2018 and 2019. The CfD scheme is Poland’s main mechanism for supporting low-carbon electricity generation. Their implementation presents a strong case for an EIB financing in line with the Climate Action objectives of the Bank. The project is also the first in Poland to benefit from an EIB Green Loan, the features of which are fully in line with the requirements set out in its climate awareness bonds programme.
The EIB investment will cover close to 50% of total senior debt – the remaining debt amount being provided jointly by Banco Santander and Caixabank Poland, partly backed by an ECA guarantee provided by EKF.
EIB Vice-President, Prof. Teresa Czerwinska, said: “Energy transformation is one of the major tasks for the future. The European Investment Bank, being EU Climate Bank, is delighted to co-finance EDPR’s wind farms’ project. We strongly believe that by investing in the diversification of the energy sector in Poland, we support the Climate Action and improve the quality of life of the society.”
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The bank finances projects in four priority areas – infrastructure, innovation, climate and environment, small and midi-sized companies (SMEs). In 2020, the EIB Group provided €5.2bn in financing to projects in Poland.
EDP Renewables, is a global provider of the renewable energy sector and the world's fourth-largest renewable energy producer. With a sound development pipeline, first class assets, and market-leading operating capacity, EDPR has undergone exceptional development in recent years and is present in 26 international markets across Europe, Latin America, North America and Asia.